HB22-1387 Summary

• Requires common interest community associations with major shared components to obtain a Level I Full Reserve Study at least every 30 years and update it with Level II or Level III updates at least every 5 years.

• Defines "adequate reserve funds" as money in excess of operating expenses specifically dedicated for maintenance, repair, or replacement of property that has reached the end of its estimated useful life based on the most recent reserve study, without requiring borrowing or special assessments.

• Requires declarants to obtain a Level IV Preliminary Reserve Study before conveying units to non-affiliate owners and provide reserve study results and budgets to potential purchasers in seller's disclosures.

• Mandates that within 60 days after unit owners elect a majority of the executive board, the declarant must deliver a Level I Full Reserve Study to the association at the declarant's expense, which cannot be charged to the association.

• Allows executive boards to amend budgets or impose special assessments to address emergent life circumstances (immediate dangers to structural integrity affecting life, health, safety, or property) or government-imposed requirements without unit owner veto.